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TechDefused
Jan 23, 2026 8:11 PM
Updated Feb 25, 2026 7:25 PM

Tesla has removed its basic Autopilot software as a standard feature on new Model 3 and Model Y cars in the US, a move that sharpens its push towards selling its more advanced Full Self-Driving system.

Buyers of Tesla’s cheapest models will now only receive traffic-aware cruise control, which adjusts speed to match surrounding vehicles but does not steer or keep the car centred in a lane.

Previously, Autopilot also included auto-steer and lane-changing assistance. Those features are now reserved for Full Self-Driving, which Tesla is increasingly positioning as a paid subscription.

The change comes as Elon Musk shifts the business model away from a one-off $8,000 fee for Full Self-Driving towards a monthly subscription priced at $99, with Musk warning that the price will rise as the technology improves.

He has argued that the biggest jump in value will come when drivers no longer need to supervise the system at all.

Tesla has not said whether the decision is linked to regulatory pressure in California, where it has been ordered to change how it markets Autopilot and Full Self-Driving.

The move stands out as rival carmakers continue to offer similar driver-assistance features as standard.

Tesla shares have been volatile, recently lifted by the launch of limited driverless robotaxi rides in Austin, even as the company trails competitors in fully autonomous deployment.

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